TLDR:
- Cantor Fitzgerald is creating a $3 billion Bitcoin acquisition vehicle called 21 Capital
- Tether will contribute $1.5 billion, SoftBank $900 million, and Bitfinex $600 million
- Brandon Lutnick, son of US Commerce Secretary Howard Lutnick, will lead the venture
- The vehicle will operate through Cantor Equity Partners, a SPAC that raised $200 million in January
- Partners will convert Bitcoin contributions to shares at an $85,000 per coin valuation
Cantor Fitzgerald is making a major move into the cryptocurrency space with the creation of a $3 billion Bitcoin acquisition vehicle. The new venture, called 21 Capital, will receive backing from three key industry players: Tether, SoftBank, and Bitfinex.
According to a Financial Times report, Tether has committed to seed the vehicle with $1.5 billion worth of Bitcoin. Japanese investment giant SoftBank will contribute $900 million, while cryptocurrency exchange Bitfinex will add $600 million to the pool.
The venture will be led by Brandon Lutnick, son of US Commerce Secretary Howard Lutnick, who also serves as Chairman of Cantor Fitzgerald. The elder Lutnick has shown interest in cryptocurrencies and Bitcoin specifically.
21 Capital will operate through Cantor Equity Partners, a special-purpose acquisition company (SPAC) that raised $200 million in January of this year. The partnership aims to create a publicly listed alternative to MicroStrategy, which has transformed itself into a Bitcoin-focused company.
Mirroring MicroStrategy’s Success
Industry experts have drawn comparisons between Cantor’s new venture and MicroStrategy’s Bitcoin accumulation strategy. Ryan Watkins, co-founder of Syncracy Capital, described 21 Capital as “another MicroStrategy clone.”
MicroStrategy has gained attention for its aggressive Bitcoin acquisition approach. The company’s market capitalization has surged to $91 billion following its pivot to Bitcoin investing.
MicroStrategy recently purchased an additional 6,556 BTC, continuing its streak of Bitcoin acquisitions. This accumulation strategy has proven successful for the company, which may explain why Cantor Fitzgerald is pursuing a similar approach.
However, not everyone views this trend positively. Watkins warned that multiple companies accumulating Bitcoin could lead to “bubble behavior” that might trigger market unwindings in the future.
The partners working with Cantor are scheduled to convert their Bitcoin investments into 21 Capital shares, priced at $10 per share. This conversion would value Bitcoin at $85,000 per coin.
Political Context and Market Impact
The creation of 21 Capital comes during a time of increasing cryptocurrency acceptance in the political sphere. Crypto lawyer John Deaton has connected the move to US President Trump’s decision to launch a Strategic Bitcoin Reserve.
Trump’s executive order directs Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent to acquire Bitcoin in budget-neutral ways. This political backdrop may provide additional support for Cantor’s Bitcoin venture.
Howard Lutnick, who worked at Cantor Fitzgerald for over four decades, was appointed as Commerce Secretary by President Trump in November. Under his leadership, Cantor has made several moves into the cryptocurrency space.
In November of last year, Cantor Fitzgerald revealed plans for a separate $2 billion Bitcoin lending program in partnership with Tether. By March this year, the company announced it would utilize crypto platforms maintained by Anchorage Digital and Copper.
Bitcoin’s price reacted positively to the news of Cantor’s new venture, climbing to a two-week high of $93,000. The cryptocurrency had previously peaked at around $106,000 earlier this year following Trump’s election victory, before falling to $79,000 and then recovering.
While the deal is expected to be announced in the coming weeks, the Financial Times notes that it may not materialize, and the figures remain subject to change. The three sources cited in the report were briefed on the matter but not named.
If successful, 21 Capital would represent one of the largest institutional moves into Bitcoin to date. The $3 billion venture would further legitimize cryptocurrency as an asset class worthy of major institutional investment.
